Ridgetech, Inc.

What they do

Ridgetech, formerly China Jo-Jo Drugstores, Inc., operates a chain of retail drugstores in China through its variable interest entities (VIEs), which include Jiuzhou Pharmacy, Jiuzhou Clinic, and Jiuzhou Service. The company's operations are concentrated in the Qiantang District of Hangzhou, Zhejiang Province, and it also provides clinic and service-related healthcare offerings. Revenue is generated primarily from the sale of pharmaceutical and health products across its retail network.

Revenue drivers

• Retail drugstore sales — Core revenue from over-the-counter and prescription medicines sold through its drugstore network in China; this is the largest and primary revenue stream.
• Clinic services — Revenue from Jiuzhou Clinic, offering outpatient and diagnostic services, contributing a smaller portion of total revenue.
• Service and ancillary products — Revenue from Jiuzhou Service and other ancillary healthcare products and services, representing a minor but supplemental income source.

Recent performance

For fiscal year 2026 (ended March 31, 2026), revenue was $132.2 million, up from $120.0 million in 2025, but the company recorded a net loss of $1.3 million, swinging from net income of $10.2 million in the prior year. Diluted EPS fell to -$17.21 from $275.87, reflecting the impact of the 1-for-150 reverse share split. Operating cash flow was -$1.4 million versus +$1.2 million in 2025. As of March 31, 2026, the company had $17.9 million in cash, total assets of $69.0 million, and total liabilities of $28.3 million.

Strategy

Management's stated direction is to continue operating and expanding its retail drugstore and healthcare services footprint in China, focusing on the Hangzhou region. The company has not disclosed any major new investments or acquisitions in this filing. The recent 1-for-150 reverse share split, effective April 7, 2026, was executed to adjust its share structure and potentially maintain Nasdaq listing compliance. The company remains committed to its VIE structure for controlling its operating subsidiaries.

Risks

• Regulatory and VIE risk — Operating through VIEs in China exposes the company to regulatory changes affecting foreign ownership and control of Chinese healthcare businesses.
• Profitability volatility — Net income swung from $10.2 million in 2025 to a loss of $1.3 million in 2026, indicating unstable earnings and potential ongoing losses.
• Negative operating cash flow — Operating cash flow turned negative in 2026, which could pressure liquidity despite a cash balance of $17.9 million.
• Nasdaq listing compliance — The reverse stock split suggests potential bid price or share count issues that could threaten continued listing on the Nasdaq.

Outlook

Management does not provide explicit forward-looking guidance in this filing. The reverse share split and continued operations suggest a focus on maintaining listing status and stabilizing financial performance. The company faces ongoing challenges in achieving consistent profitability and positive cash flow.